Exporters and importers have always demanded regular updates to stay informed about what’s happening in our industry. They want to know about new notifications and how they might impact us. We need to understand the advantages and disadvantages, as well as the compliance steps we should take. It’s crucial that we receive all this information on a regular basis so that we can make well-informed decisions.
Keeping this demand of the Exim (Export and Import) industry in mind, we are initiating a new series that’s a first of its kind. In this series, we will not only provide regular conceptual and informative blogs, but also every Tuesday, we will upload a short video lasting less than 5 minutes. In this blog, you will find all the important updates from the previous week presented in a simple and concise manner. This series will greatly benefit new Exim startups, import-export business owners, and professionals working in the Exim field. So, let’s get started.
Overall Trade Scenario
In July, there has been a decline of 16% in goods exports, and there is also a slowdown in services exports due to decreased demand.
If we look at the period from April to July 2023, the combined figure for goods and services exports has decreased by 6% compared to the same duration last year.
There is an overall slowdown in global commerce. Export activities have also significantly reduced in China and Germany.
All these factors will have an impact on India’s overall economic growth for this financial year.
General News in Exim Industry
In a significant development benefiting all holders of the Authorized Economic Operator [AEO] Certificate, India has established a Mutual Recognition agreement with Australia in addition to its agreements with the USA and UAE. This agreement allows for the recognition of AEO Holders from both countries, providing Indian AEO Holders with smoother clearance procedures within the Australian Customs.
It’s worth noting that the India-Australia Free Trade Agreement (FTA) is currently operational. A major update in its utilization has emerged recently. The update indicates that 90% of major textile and engineering goods exported from India are now availing the benefits of the India-Australia FTA. This is a substantial boost for India, signaling its proficiency in negotiating beneficial FTAs and the growing awareness within industries regarding FTA advantages.
Last year in September, India imposed a ban on the export of white rice. However, based on several news reports, it’s anticipated that the government might soon lift the ban on the export of non-basmati white rice due to favorable production conditions.
Watch this video on Export Import [EXIM] Business Weekly Updates – General News | New Notifications | 07 to 20 August 2023
DGFT & CBIC Important Notifications
Now, let’s discuss some important DGFT (Directorate General of Foreign Trade) and CBIC (Central Board of Indirect Taxes and Customs) Notifications:
- After imposing import restrictions on laptops, tablets, and PCs, the government has taken another significant step by imposing an export duty of 40% on the export of onions until December 31, 2023. This export duty of 40% will be applicable to onions falling under sub-heading 070310 for exports until December 31, 2023. Once again, this move is aimed at controlling domestic onion prices.
- DGFT has previously issued notifications stating that the issuance of Non-preferential Certificates of Origin (CoO) in manual mode will only be valid until December 31, 2023. After this date, all exporters will be required to apply for CoOs through the compulsory online CoO portal. In the latest notification, DGFT has set a deadline for all agencies to onboard the common digital CoO platform by August 31, 2023.
International Logistics & Freight Rates
You can see in the image the sector-wise export freight rates for selected trade routes, which are indicative in nature.
MSC, which had previously announced a Peak Season Surcharge and General Rate Increase for the India-US trade route, has now reversed its decision. The main reason for withdrawing this decision is the weak demand, which hasn’t picked up even during the peak season.
Speaking about international logistics, vessels are facing significant delays in the Panama Canal due to reduced water levels. This problem is expected to worsen in the first half of 2024. Prime Minister Modi has held discussions with his Iranian counterpart to realize the full potential of the Chabahar Port. This is aimed at ensuring that Indian shipments reach Europe more quickly.
Who are We & Why choose us?
We at AFLEO Group, are a team of DGFT & Customs Experts having a rich experience of 10+ Years in Exim Consultancy & International Logistics [Freight Forwarding] and also deal in Buy/Sell/RODTEP/ROSCTL/DFIA License With our vast knowledge and experience in this field we can represent your case for all the activities pertaining to the services and get it in a hassle-free manner. We are well-equipped to handle the logistics of global trade with efficiency and expertise. Let us handle the logistics while you focus on growing your business. Contact us today to learn more about how we can help you streamline your supply chain and increase your bottom line. We are dedicated to providing efficient and cost-effective logistics services to help our clients.
So do get in touch with us for any of your requirements and our team will be happy to help you.
We request you to share this information with your other Industry friends, Trade associations, as this information might help them as well.